HSBC bank have announced a series of measures to help out businesses and clients which are taking a financial hit due to the coronavirus outbreak.

Local businesses say they are starting to feel the pinch of a decline in trade and cancelled bookings. Malta has barred all travel to and from Italy and ordered all events of more than 2,000 people outdoors or 750 people indoors to be cancelled. 

HSBC bank told clients on Wednesday that it would be introducing the following measures to support the Maltese business community:

Capital repayment holidays

The bank says it will consider short-term capital repayment holidays on term lending. Interest repayments would need to continue being made throughout the term of the concession. 

Fee-free temporary short-term working capital funding

Temporary short-term working capital funding without any fee will be considered for customers facing cash-flow problems due to loss of business arising as a result of the outbreak.

Faster shipping guarantees, with urgency fees waived

Customers experiencing delays in receiving shipping documents from counter-parties, may apply for the bank to issue shipping guarantees with ‘immediate priority’, as opposed to the standard ‘same-day’ issuance.

‘Urgency fees’ in such cases will also be waived in order for customers to transfer or receive goods from their counter-party faster without incurring additional costs.

Waived amendment fees 

During this period, customers may experience delivery disruptions resulting in the late shipment and late presentation of documents. The waiver of amendment fees on the letter of credit will enable customers to change the terms of the letter of credit to avoid penalty costs when their supplier presents documents under it.

The bank noted that all cases would be considered on their own merit. While saying it was committed to engage with businesses across the country, it expressed hope that such measures would mitigate the effect which COVID-19 was having on the business community.